CO2 Emissions from New Passenger Cars in the EU: Car Manufacturers’ Performance in 2016

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CO2 Emissions from New Passenger Cars in the EU: Car Manufacturers’ Performance in 2016 www.theicct.org BRIEFING JULY 2017 CO2 emissions from new passenger cars in the EU: Car manufacturers’ performance in 2016 The purpose of this briefing paper is to provide a summary of CO2 emission levels of new passenger cars in the European Union (EU) in 2016. The briefing is based on a preliminary dataset recently released by the European Environment Agency (EEA) on monitoring CO2 emissions from new passenger cars in the EU. New cars sold in the EU in 2016 had average CO2 emissions of 118 g CO2/km, which was 1.2% lower than in 2015. As a follow-up to the previous year’s briefing,1 this paper details manufacturers’ performance in terms of CO2 emissions reduction, fuel and technology trends, and market share. The paper focuses on differences between Member States, as well as between the major manufacturer groups. It also discusses the impact of the super- credit provision on the average CO2 emission values of manufacturer groups. 1. BACKGROUND The EEA recently released a preliminary dataset on the CO2 emissions performance of new passenger cars in the EU in 2016.2 This dataset is at the core of the monitoring scheme of CO2 emissions from passenger cars, and is used by the European Commission to evaluate whether car manufacturers comply with their mandatory CO2 targets as defined in the 1 Sonsoles Díaz, Uwe Tietge, and Peter Mock, CO2 emissions from new passenger cars in the EU: Car manufacturers’ performance in 2015 (ICCT: Washington DC, 2015). http://www.theicct.org/co2-from-new-cars- eu-2015. 2 European Environment Agency, “Monitoring of CO2 emissions from passenger cars – Regulation 443/2009” (2017). https://www.eea.europa.eu/data-and-maps/data/co2-cars-emission-12. Prepared by: Murat Şenzeybek, Uwe Tietge, Peter Mock BEIJING | BERLIN | BRUSSELS | SAN FRANCISCO | WASHINGTON ICCT BRIEFING Regulation EC 443/2009. The EEA collects the data from the Member States, which are required to submit detailed information on each new car registered on a yearly basis. The EEA data show that the sales-weighted average CO2 emissions from new passenger cars in the EU in 2016 were 118 g CO2 /km, 1.2% lower than in 2015. As illustrated in Figure 1, average CO2 emissions from new cars decreased by more than 27% from 2005 to 2016. From 2008, when CO2 targets were first agreed upon, CO2 emissions fell at an average rate of 3.2% per year, and vehicle manufacturers reached the average 2015 target of 130 g/km in time. If average CO2 emissions from new cars continue to decrease at a similar pace, car manufacturers would meet the 2020/21 target of 95 g CO2/km, which includes a one-year phase-in. The reduction rate is much higher than in a business- as-usual scenario without mandatory standards: Before mandatory standards were agreed upon in 2008, the annual rate of improvement was only about 1.2%. The reduction of CO2 emissions implies a reduction in fuel consumption, as they are effectively proportional. Since 2005, fuel consumption has decreased from 6.9 l/100km to 5.1 l/100km (gasoline equivalent) in 2016.3 180 historical data trends targets 160 business as usual: −1.2%/year until 2007 140 emission values (g/km) 2015: 130 g/km 2 120 with standards: −3.2%/year from 2008 Average CO 100 2020: 95 g/km (one year phase-in) 80 2005 2010 2015 2020 Year Figure 1. Historical development, trends, and targets for CO2 emission levels of new passenger cars in the EU. Effects of phase-in, super-credits, and eco-innovations are not considered here. 2. CO2 EMISSIONS BY VEHICLE MANUFACTURER Car manufacturers can pool together the average emissions of several brands to meet CO2 standards (only the average CO2 emissions of a pool as a whole are regulated). For the purpose of this analysis, we follow a definition of manufacturer groups that is 3 The factor of 23.3 g CO2/km per liter gasoline/100 km was used to convert from CO2 emissions to fuel consumption. 2 CO2 EMISSIONS FROM NEW PASSENGER CARS IN THE EU: CAR MANUFACTURERS’ PERFORMANCE IN 2016 intended to mirror the actual vehicle market as closely as possible and may be different from manufacturer pools in the context of the EU regulations.4 Figure 2 illustrates the distance of each manufacturer group to its 2015 and 2020/21 emission targets. The 2015 and 2020/21 targets for each manufacturer group are set according to the average mass of their new fleet, based on the limit value curves displayed in the figure. The exact 2020/21 target line equation has not been officially set yet, as it will be adjusted based on the average mass of new passenger cars in the three calendar years leading up to the target year. For the current analysis, the 2020/21 target equation was defined using the 2016 average vehicle mass. For each manufacturer group, the 2020/21 target implies a decrease of approximately 27% in average CO2 emissions compared to the 2015 target. 160 2015 TARGET LINE 140 Ford Volkswagen BMW Daimler 120 FCA Renault-Nissan Average PSA (g/km) Toyota 100 2020 TARGET LINE 80 emissions 2 CO 60 40 Average 20 0 1,100 1,300 1,500 1,700 Average vehicle mass (kg) Figure 2. Performance of the top-selling EU passenger car manufacturer groups for 2016, along with the 2015 and 2020 (effectively 2021) target lines. For PSA and Renault-Nissan the changes in their respective fleet averages resulting from the recently announced mergers with Opel/Mitsubishi are indicated with arrows. Table 1 presents average CO2 emission values for the eight major manufacturer groups (representing 86% of the 2016 EU new car registrations), both with and without considering the effect of super-credits. Super-credits are favorable weightings for cars emitting less than 50 g CO2/km. The impact of super-credits is discussed in detail in Section 4. It should be noted that to illustrate the effect of super-credits, the 2021 multiplier 1.67 has been applied in the table. The 2020/21 target for each manufacturer was calculated using the respective average mass in 2016. 4 Manufacturers are defined here as: PSA (Citroën, Peugeot, DS Automobiles, with and without Opel); Toyota (Daihatsu, Lexus, Toyota); Renault-Nissan (Dacia, Infiniti, Lada, Nissan, Renault, with and without Mitsubishi); Ford (Ford, Lincoln); FCA (Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati); Volkswagen (Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda, Volkswagen); Daimler (Mercedes-Benz, Smart); and BMW (BMW, Mini). Mitsubishi Motors joined the Renault-Nissan alliance in October 2016. Opel was acquired by PSA in March 2017. 3 ICCT BRIEFING Table 1. Manufacturer group market shares, average vehicle mass, CO2 emissions with and without super-credits for 2016, and CO2 emission targets for 2020 (effectively 2021). CO (g/km) 2 EU market Average 2016 w/o 2016 w/ super- 2020/21 share mass (kg) super-credits credits for 2021 target Toyota 4% 1,340 105 105 93 PSA 17% 1,281 110 110 91 Renault-Nissan 15% 1,304 111 110 92 Average 1,388 118 118 95 FCA 6% 1,247 120 120 90 Ford 7% 1,369 120 120 94 Volkswagen 24% 1,419 120 120 96 BMW 7% 1,572 123 121 101 Daimler 6% 1,584 125 125 102 Overall, the CO2 reduction progress from 2015 to 2016 was slow for most manufacturers. The market share of PSA increased from 11% in 2015 to 17% in 2016, thanks to the recent acquisition of Opel. At the same time, average fleet CO2 emissions of PSA including Opel increased by 5 g/km to a level of 110 g/km. The 2020/21 target for PSA remained stable at 91 g/km despite efficiency improvements by the two major PSA brands Peugeot and Citroën, indicating that the Opel brand is still further away from its 2020/21 CO2 target level than the rest of the new PSA group (see Figure 1). Toyota remains the manufacturer group closest to its 2020/21 target, with a current emissions level of 105 g/km CO2 and a target of 93 g/km. An effect of super-credits at the manufacturer group level is only notable for Renault-Nissan and BMW, respectively benefiting from a 1 g/km and 2 g/km reduction of average CO2 values as a result of the super-credits provision. 3. FUEL/TECHNOLOGY TRENDS BY MEMBER STATE AND MANUFACTURER Passenger cars powered by alternative fuels made up a small share of the new EU car fleet in 2016. The share of electric vehicles, namely hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs), increased from 2.5% in 2015 to 3.2%. Conventional diesel and petrol cars accounted for 95% of new cars. With a market share of 49%, diesel cars continued to account for most new registrations, but lost three percentage points compared to 2015.5 Table 2 presents the market share of various fuels and technologies in 2016 by country.6 Alternative fuel types such as hydrogen, compressed natural gas (CNG), ethanol- gasoline mix, and liquefied petroleum gas (LPG) have been grouped as “Other.” 5 For details on the recent developments in diesel market shares in Europe see “Cities driving diesel out of the European car market,” Uwe Tietge and Sonsoles Díaz, 16 May 2017, http://theicct.org/blogs/staff/cities- driving-diesel-out-european-car-market. 6 Because the EEA data do not include details on plug-in hybrid electric vehicles, EEA data have been supplemented with commercial data obtained from IHS-Polk.
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